What is Bitcoin Dominance?

Bitcoin dominance refers to the percentage of the total cryptocurrency market cap that is held by Bitcoin. It’s a measure of Bitcoin’s market share compared to all other cryptocurrencies combined. The formula to calculate it is:



For example, if Bitcoin’s market cap is $600 billion and the total market cap is $1 trillion, the dominance would be 60%. This means Bitcoin represents 60% of the total crypto market.

Why is Bitcoin Dominance Important?

1. Market Sentiment: High dominance indicates Bitcoin’s dominance, while low dominance suggests increased interest in altcoins.

2. Market Trends: A drop in Bitcoin dominance often signals an “altcoin season,” where alternative cryptocurrencies outperform Bitcoin.

3. Investor Behavior: During uncertain times, Bitcoin’s dominance tends to rise as investors seek stability, while altcoins may rise in bull markets.

Tracking Bitcoin Dominance

Bitcoin dominance can be easily tracked on platforms like CoinMarketCap or CoinGecko. Understanding it helps investors gauge market trends and make informed decisions in the ever-evolving world of crypto.

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